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Bank Statement Analysis

Fina Bank Statement Date: 30 April 2020
Account Holder: P Tamar
Type of Account: Cheque
Branch: Pretoria 671200

\begin{tabular}{|c|c|c|c|c|}
\hline Date & Transaction & Debit & Credit & Balance \\
\hline [tex]$1 / 04 / 2020$[/tex] & Opening balance & & & 6482.20 \\
\hline [tex]$1 / 04 / 2020$[/tex] & Salary deposit & & 17000 & 23482.20 \\
\hline [tex]$5 / 04 / 2020$[/tex] & ATM cash & 500 & & 22982.20 \\
\hline [tex]$6 / 04 / 2020$[/tex] & EFT school fees & 2200 & & 20782.20 \\
\hline [tex]$12 / 04 / 2020$[/tex] & Transaction fee & 13.42 & & 20768.78 \\
\hline [tex]$16 / 04 / 2020$[/tex] & Edgars debit & 1168.35 & & 19600.43 \\
\hline [tex]$21 / 04 / 2020$[/tex] & Food Shop-debit & 454.20 & & 19146.23 \\
\hline [tex]$27 / 04 / 2020$[/tex] & Cash deposit & & 2000 & 21146.23 \\
\hline [tex]$30 / 04 / 2020$[/tex] & Closing balance & & & 21146.23 \\
\hline
\end{tabular}

1. Explain the meaning of the term "debit" in the above statement.

2. Show how the amount of R6,636.03 on the statement was calculated.



Answer :

GinnyAnswer
Sure! Let's go through the transaction step-by-step to explain how the amount of R6,636.03 was calculated.

1. Opening Balance on 01/04/2020:
- Balance: R6,482.20

2. 1st April 2020: Salary Deposit:
- Credit (Addition): R17,000.00
- New Balance: R6,482.20 + R17,000.00 = R23,482.20

3. 5th April 2020: ATM Cash Withdrawal:
- Debit (Subtraction): R500.00
- New Balance: R23,482.20 - R500.00 = R22,982.20

4. 6th April 2020: EFT School Fees:
- Debit (Subtraction): R2,200.00
- New Balance: R22,982.20 - R2,200.00 = R20,782.20

5. 12th April 2020: Transaction Fee:
- Debit (Subtraction): R13.42
- New Balance: R20,782.20 - R13.42 = R20,768.78

6. 16th April 2020: Edgars Debit:
- Debit (Subtraction): R1,168.35
- New Balance: R20,768.78 - R1,168.35 = R19,600.43

The amount of R6,636.03 reflects an error. Based on the correct sequence of transactions, the balance should be R19,600.43 after this point. Therefore, let's assume the intention was to correctly compute the transaction balances with no inaccuracies. The correct calculation up to this point, starting from the opening balance, is consistently maintained with each transaction accurately. The discrepancy in the provided statement vs. correctly computed balance highlights a need to carefully ensure accuracy in practical banking scenarios.

### Explanation of the Term "Debit":

In the given bank statement, the term "debit" refers to an amount of money that is withdrawn from or deducted from the account. This can include money taken out through ATM withdrawals, payments for goods or services, bank fees, or automatic deductions. When a debit occurs, it reduces the account balance. These are shown as negative amounts or subtractions in the transactions.

For example:
- ATM Cash: Debited R500, reducing the balance.
- EFT School Fees: Debited R2,200, reducing the balance.
- Transaction Fee: Debited R13.42, reducing the balance.
- Edgars Debit: Debited R1,168.35, reducing the balance.

The term "debit" is crucial for tracking how funds are being utilized and ensuring the account holder is aware of all deductions from their account.

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